Protect you clients’ data — or you’ll pay.
Brokers who don’t invest in cyber security face stiffer fines in 2016 as part of a stepped-up enforcement strategy, Wall Street’s self-regulating cop told The Post on Tuesday.
The potential for millions of dollars in fines is part of a “broken windows” policy, Richard Ketchum, the chief executive of the Financial Industry Regulatory Authority, said, alluding to the policy under which city police forces put an emphasis on smaller issues to prevent them from growing into larger problems.
Last year, a record $190.1 million in fines and restitution were paid to Finra by slip-shod brokers, Ketchum said.
“The bar does continue to get raised,” he said.
“The sophistication of the attacks today are greater and the range of the commonality of the attacks are increasing,” he said.
In addition, the watchdog will increase its attention to high-frequency trading firms to keep them from manipulating markets, Finra said in announcing its 2016 examination priorities.
The stricter standards are coming as brokers have complained about over-reach by Finra for cracking down on minor infractions that go on their permanent record.
“They spend all these resources on these little mistakes,” one Wall Street insider told The Post.